Primary Factors of Employer Value Proposition Effecting Business

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Factors of Employer Value Proposition

If you’ve just came across the term employer value proposition, or EVP, and are wondering what it’s all about keep it up reading!

It’s a comparatively new term in HR, but the concept isn’t. what’s Employer Value Proposition? Briefly, it’s the salary, benefits, and compensation an employer offers employees reciprocally for his or her skills, experience, and contribution to the success of a corporation.

That definition seems logical and easy, but it doesn’t explain why it’s suddenly gained such a lot of prominence.

The short answer? Because employers have realized that an employer brand proposition is important to a meaningful employer branding strategy.

What Is Employer Value Proposition In Business?

Employer Value Proposition is that the value proposition which will make employment seeker apply to a corporation and keep an existing employee working there. The Employer Value Proposition of a corporation must be designed to suit the industry, align with the company branding and appeal to the sort of individuals the organization wants to draw in and retain.

No marketing efforts can succeed without a worth proposition. An Employer Value Proposition tells people why a corporation is an employer of choice. An EVP must be an employee-centered strategy that’s kept alive and up so far through ongoing interaction with employees and external marketing research.

Your EVP can’t achieve success if you don’t know what appeals to and is needed by potential and existing employees.

An Employer Value Proposition is often viewed from two perspectives:

  • From a corporation perspective, it’s an employer value proposition that draws and retains talent.
  • From an employee and job seeker’s perspective, it’s an employee value proposition that creates people who want to figure for a corporation and most significantly stay working there.

Every business features a value proposition that they provide to customers, candidates, and employees whether or not they have consciously defined a technique or not. Without an outlined customer value proposition or an employee value proposition model, business is perhaps not going too well.

The value a business offers customers, candidates, and employees isn’t only about their products and services or the compensation they provide to their staff. Companies must provide an excellent customer experience, excellent employee experience, and an excellent candidate experience. EVP in business encompasses everything from an organization’s culture, mission, and values to service, rewards, and therefore the sort of people that work there.

A well-structured EVP will attract and retain the proper staff for your business. You’ll have people on board who want to be a part of the corporate because they invest in the culture, mission, and values. meaning that they’re going to automatically offer customers top service because they need to ascertain the organization’s success.

However, there are seven factors that are considered as the primary pillar of every EVP. Read on to know them in details:


Compensation covers salary and the other cash components that are offered to employees. The salaries and wages given out to the employees should be competitive, performance reviews must be fair, and compensation structures must be fair and flexible. The structure created for commission and bonus must be clear and uniform across all departments in the company. The production, sales, or performance targets set by the management must be communicated in clear writing and should be honored without question if an employee meets their objectives. Employee recognition plays an important role in employee engagement and ultimately employee retention.

Annual salary reviews supported performance appraisals also don’t cut it anymore. Line managers and HR must conduct ongoing evaluations. Employees who continually go the additional mile or who have furthered their qualifications must be recognized, and their salaries adjusted accordingly.

Perks and Benefits

The value of individual benefits will differ from one person to a different and employers must consider that. Allow flexible benefit options in order that employees can choose what adds value to their lives. Benefits include medical, personal, and retirement insurance, flexible working hours, a paid day off, sponsored subscriptions, and education opportunities. Benefits must be open for discussion, and new benefit options must be communicated to all or any employees.


Rewards are breakaway compensation and benefits therein they acknowledge employees’ deeds and activities that benefit the corporate or their colleagues. An employee referral program is a superb example. Rewards are often in cash, vouchers, holiday accommodation, and also paid days off. various things appeal to different people. Employee rewards are usually amid public recognition within the corporate and even in industry publications.


For any company to create a healthy and productive workforce the people they hire must be a superb cultural fit. We don’t all have equivalent morals, ideals, and concepts of what’s right and wrong. Attracting talent that aligns with the corporate culture is important. Employees that clash with, or hold widely different opinions compared to the management and their colleagues will either become disruptive, or they’ll leave. Culture also defines solidarity and trust within a corporation.


Vision is extremely almost like company culture. We also don’t all have equivalent goals and future plans. Prospective future, as well as current employees, must understand the company’s mission, values, and goals. people that have an equivalent vision in life are more inclined to collaborate with one another and support each other.

Career progression

Career progression is vital for many people. Benefits like on-the-job training and development, guidance, study sponsorship, mentorship, and defined succession planning are often a deal maker.

Work environment

A safe and healthy work environment is essential for many people. Employees want to understand that they’re recognized, heard, have clearly defined roles, and are appreciated. many of us want autonomy, the chance to be innovative, and an opportunity to form a meaningful contribution.

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